Brazil’s export of the soybean complex summed 3.87 million metric tons in October, according to official data. The volume has jumped 123.83% compared to the same month of 2016. The revenue generated by those sales was US$ 1.45 billion, which is 107.6% higher than last year. On the other hand, the number is 27.7% lower than September.
The sum of Brazilian exports of the soybean complex accumulated in the year is 77.1 million metric tons and US$ 29.1 billion, while a year ago the export sales reached 64.2 million metric tons or US$ 24.1 billion. Still in October of 2017, the soybean exports in grain reached 2.48 million metric tons, which is 149.1% more than a year ago. The soybean meal exports summed 1.27 million metric tons in the month, an increase of 76%. The soybean oil external sales reached 115,600 tons, a jump of 1,070.6% from a year ago.
There were rains recently in the Center-West of Brazil, but there is a forecast of below average rain in key producing regions of Brazil in the month of November compared to the previous five years, according to Somar Metereologia.
The planting works advanced 18 percentage points in one week for soy, but producers now worry with the weather forecast for the beginning month, data from the Mato Grosso Institute of Agricultural Economics (Imea) reveals. The total sobyean surface planted 44.06% in the state.
The lack of rains has been a constant in some Center-Western states like Goiás, Tocantins, Mato Grosso do Sul, and Mato Grosso. Moreover, the state of Paraná has also registered major delays of soybean planting. Now, the major worry for farmers in all of these states, which are large soybean producers, but also producers of corn in the winter, is that many farmerswould lose the right window to plant the secorn corn crop. Soybeans are usually harvested between January and February and most farmers plant corn right after over it.
Data from the Rosario Board of Trade reveal that the soybean sales in Argentina are the slowest since 2015, when the country was still governed by the Kirchner administration. On the other hand, grains from the coming season have more volume and the largest commercialization of the last six years. For the coming crop, 4.9 million metric tons were already sold.
The explanation from the tax reduction. The current of soybean exports are at 30%. For 2018, the sales of the grain will a rate reduction of 0.5 percentage points per month. For the end of the next year, the rate would be 24%, which generates a larget difference for the future.
In Rosario, the value of the oilseed dropped 2% to US$ 252 per ton. The contracts for May 2018 are quoted at US$ 265 per ton. The difference between both contracts widened to 5%. For the Futuros Y Opciones analyst Dante Romano this trend would continue.
“In this context, farmers will retain more grain once the producer sees a prize increasing slowly, leaving the grain in the silo bags”, stated the analyst.
The level of soybeans processed are also the lowest since 2015. Yet according to the Rosario Board of Trade, the volume of final stocks in Argentina would reach a record of 16 million metric tons. Therefore, the historic volume to be sold next year would be 70 million metric tons. A large of the contracts to be delivered next year do have a price set.
Several localities in the province of Córdoba, Central Argentina, have suffered this morning (10.27) with a 15-minute storm. After several months with a high level of water, strong rains affected localities in the province like Río Tercero, Embalse, Almafuerte, Berrotarán, and La Cruz. Power outages were registered in all of these locations. The precipitation level this morning reached 2.7 inches.
Argentina has already started soybean planting. In the case of corn, nearly 32.8% of the surface is already planted, according to the data from the Buenos Aires Cereal Exchange. The harvest takes place for wheat, where the nationwide surface was 2.8% harvested.
Data revealed by the consultancy AgResource says that the soybean planting in Brazil has already reached 30% of the estimated total surface. Compared to the previous year, there is a delay of nine percentage points. The delay is mostly attributed to the irregularity of rains in Mato Grosso and excess of rain in the Southern States.
The United States government has decided to increase the duties paid to import Argentinian biodiesel from 54% to 70% this week. The Argentinian Chamber of Biodiesel (Carbio) considered this measure “unjustifiable” and “unsupported”. In addition, the Chamber stated that the U.S. industry will “monopolize the market”.
The lack of rains in the Brazilian state of Mato Grosso has impeded the country of advancing more with the soybean planting. A number of the consultancy AgRural puts the works at 20% of the surface nationwide, which is nine percentage points lower than last year.
In Mato Grosso, separately, the works reached 25.8% of the total area, according to the state’s Institute of Agricultural Economics. The total surface expected to be planted in the state is 2.3 million acres.
In one week, there was an advance of 11.3 percentage points, but still, tracks behind previous years. This year, the rains just started by October, but irregularly.
According to official data of the Brazilian state of Paraná, after 40 days without any rain drop, nearly 76% of the corn surface was already planted. However, the area is 33% smaller than the previous year. Even though planting conditions were not ideal, most producers could finish work within the right window.
The reason for the shrunk acres is that most farmers switched to soybeans that pay three times more for the producer. A soybean bag of 60 kg is now worth US$ 18.90 in the state.
Occurrences of rail were registered in several locations of the province of Córdoba, Argentina, one of the leading corn and soybean producers in the country. The weather in the region has been unstable and precipitation is also happening in the south of the Buenos Aires province, the largest soybean producing province. More instability will be seen in the coming days, according to Argentina’s National Weather Service. One million hectares are already considered lost by floods in the season.